Market Profile Analysis of S&P Futures – 09.18.17…

Value Areas and POC figures for /ESZ7 and /NQZ7 Futures are posted free every morning HERE. Click on any posts in the list on the left pane to see them in the main window. Don’t click on the ST logo as it will just refresh the page and you’ll get only the topmost post over and over. Click on the title or text.

www.windotrader.com/shadowtrader

At least as far as overnight action is concerned the market is treating the last four days as less of a poor high where longs are trapped and more of a consolidation of the gains of September 11th.

Overnight inventory is 100% net long and we are currently gapping up 3.25 as of this writing. As the futures have made a new all time high in the overnight session, that is the upside reference which is at 2504.50 for today.

On the downside, I would not pay attention to the ONL, but rather Friday’s RTH high at 2498.00, a breach of which would represent a move back into the prior session’s RTH range and could bring in short term sellers who are trapped long in the overnight session. On such a move I would be watching closely to see if prices accept back inside the four day range or reject quickly and start to build breakaway value. That in and of itself is probably the most important gauge of intraday strength while trading. On further selling into Friday’s range, the obvious target would be the TPO POC at 2495.25. This is another way of measuring momentum and “feel” of a market. A market should test the point of control before rallying further if it wants to stay on firm footing. Will it? Does it? All questions you should be asking all the time.

Although my conclusion to what I thought would happen (liquidation break) was wrong, the analysis was sound. I leave you with the video of what I was thinking/seeing on late Friday….